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TMI Blog2013 (8) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri B. Ramakotaiah And Shri Vivek Varma,JJ. For the Petitioner : Shri Vijay Mehta For the Respondent : Shri Surinder jit Singh ORDER Per B. Ramakotaiah, AM: This appeal is filed by the revenue against the order of CIT(A)-40, Mumbai dated 24.08.2011. The revenue has raised the following ground: "1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in deleting penalty levied u/s. 271AAA of the I.T. Act, 1961 of Rs.55,00,000/- without appreciating the fact that assessee failed to substantiate the manner in which undisclosed income was derived so as to qualify for non-levy of penalty within the meaning of sub-section(2) of section 271AAA of the I.T. Act, 1961." 2. Briefly stated, the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me. 2.2 It was observed by the Ld. A.R that during the course of search and post search proceedings, the assessee could not explain the sources of assets referred in the table and did not substantiate the manner in which it was derived. Accordingly, penalty u/s. 271AAA was levied. 3. Before the CIT(A) it was submitted that the assessee had surrendered the amount of Rs.5.50 crores on the basis of entries contained in the 'work-in-progress sheet' seized during the course of search and statement under section 132(4) was accordingly given and assessee filed returns and paid taxes also. Therefore, provisions of section 271AAA(2) will apply to assessee for granting immunity. 3.1 Ld. CIT(A) after considering the submission deleted the penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we do not see any reason to interfere with the order of CIT(A). The order is in tune with the principles laid down by various co-ordinate Benches and High Courts particularly with reference to disclosure made under section 132(4). In the case of CIT vs. Mahendra C. Shah (299 ITR 305) the Hon'ble Gujarat High Court considered similar statement under section 132(4) to grant immunity under section 271(1)(c). The Hon'ble High Court held as under:- "When the statement is being recorded by the authorized officer it is incumbent upon the authorized officer to explain the provisions of Explanation 5 in entirety to the assessee concerned and the authorized officer cannot stop short at a particular stage so as to permit the Revenue to take advant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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